I was sufficiently annoyed by the deal with GGX to send this to...

I was sufficiently annoyed by the deal with GGX to send this to Dennis Morton (and a similar one to Russell Langusch) .. so far no answer:

Hi Dennis

I admire your work in setting up ESG (of which I am a long-term shareholder) but I find that I have a few reservations regarding the proposed transaction/change of control between OIP and GGX.

Obviously the former board members had some reservations as well! As someone who is on both boards and a major shareholder in GGX are there not some “conflicts of interest” involved here? I am struggling to see how it’s in the best interests of shareholders of the cashed up OIP to merge with cash strapped GGX. GGX obviously needs this merger much more than OIP. What value does GGX add for OIP shareholders? At first glance all I can see is that it diversifies our O&G risk but at the cost of diluting our interest in CSG. Some 78m shares being issued is a large dilution on the 115m currently. This is disappointing as the very prospective PEL 6 CSG drilling is what a number of shareholders invested in OIP for and it has been very slow happening.

It makes sense to me to merge GGX and OIP only if the intention is to sell off the remaining CSG equity in OIP’s leases to ESG and thus have a better funding position going forward to address the GGX/OIP prospects and assets. Perhaps this is the unseen but intended second part of this transaction?

I have to say also that the volume and price spike of GGX on 12 October does look a bit suspect as it managed to get the 10 day moving average up nicely in the period 5 – 15 October leading up to the announcement about the transaction. Hmmm. Any transaction should surely be happening once PEL 6 drilling is completed at which time it is reasonably likely that the OIP share price could be a multiple of current?

Regards

(Hardmano)